Dow Jones fell sharply on Thursday after Apple Inc stunned investors with its first sales warning in more than a decade. The Index fell 660.02 points and the S&P 500 lost 57.19 points. Apple blamed a slowing Chinese economy for the drop in the revenue projections, intensifying worries that the global economy may be slowing down because of the ever going trade war.
However, Donald Trump downplayed this and said that slowing chinese economy will, in fact, help the US. Negotiators from two of the world’s largest economies are gearing up for trade talks next week.
“I think we will make a deal with China,” Trump told reporters at the White House after a meeting with Democratic and Republican lawmakers. “I really think they want to. I think they sort of have to.”
“China’s not doing well now. And it puts us in a very strong position. We are doing very well,” Trump said. “I hope we’re going to make a deal with China. And if we don’t, they’re paying us tens of billions of dollars worth of tariffs — not the worst thing in the world. They’re going to be fine. Apple is a great company,” Trump said. He also added that he had told Apple Chief Executive Officer Tim Cook to build his company’s products at home in the US, something he has told him previously.
“Apple makes its product in China. China is the biggest beneficiary of Apple, more than us, because they build their product mostly in China,” Trump said. “I want Apple to make their iPhones and all of the great things that they make in the United States. And that’ll take place.”
Apple’s warning follows information released earlier this week that indicated a deceleration in factory activity in China and the euro zone, indicating the ongoing U.S.-China trade war was taking a toll on global manufacturing.
Image courtsey : Gage Skidmore